Select Committee on Health Minutes of Evidence


Examination of Witnesses (Questions 617 - 619)

WEDNESDAY 28 JUNE 2006

MR KEN ANDERSON, MR BLEDDYN REES AND MR GEOFF SEARLE

  Q617  Chairman: Could I thank you, once again, for coming along to give evidence to this inquiry. Perhaps I could start by asking you if you can tell us how many Phase 2 schemes the ISTC programme will include. At what stage of development is each of the schemes at the moment?

  Mr Anderson: The easiest ones to describe are the ones that came out in tranche 1. I think the Secretary of State stated there were 12. I cannot give you a precise number of schemes that will be completed at the end of the process. We sit down and we talk to each health economy and we come up with a value-for-money quotient. If they do not stack up, we never take them to ITN. The ones that we can definitively tell you are in the pipeline right now which are being processed through a procurement phasing are 12. We are continuing to work on other schemes with health economies, but that tends to change, depending on whether or not the health economy decides within the context of a value-for-money envelope if they stack up and it meets affordability constraints within that locality.

  Q618  Chairman: You said there are 12. The Secretary of State told us in a written submission that Phase 2 will now consist of 17 schemes. In a written answer by Ivan Lewis he stated that Phase 2 would be made up of 12 schemes—which you have just repeated to us -for elective procedures and seven regional diagnostic schemes. Are we talking of 19 and not 12 here?

  Mr Anderson: The Secretary of State's answer was correct. We have 12 that have ITNs and we have a further five that we are discussing, which were the five she told you about. They are not at ITN state. We are expecting responses back on those five. We have, underneath, a diagnostics' procurement: a further seven schemes that are out there, have been identified, have been quantified and are part of an ITN process. I guess you get the 19 plus five. I think the discrepancy is that we do not count a specific scheme as one until we have an ITN identified next to it. We go out with an indicative number of schemes, based on the local delivery plans that have come back from the National Health Service and based on their preliminary sets of means, and then next to that we map across what we feel the private sector component would look like and then we have to match a lot of affordability constraints to those. If they do not stack up then I think the issues that you are starting to touch upon were the ones that were reported in HSJ that have been withdrawn. We do not take them to market and therefore they are not real in our mind until those have gone to ITN and we have private sector entities out spending money on the bid process. Until that time, it is an internal issue between ourselves at the Department and the local health economy.

  Q619  Chairman: The Health Service Journal saying that seven were not going to go is about right at this stage. It is 12 plus five, so it is about right.

  Mr Anderson: That is correct, but they were not included in the number that the Secretary of State answered in question 585 in the official transcript. Those were seven schemes that we had not taken out to the market place. They were seven schemes about which we were in discussions internally with other health economies and so they were not a part of the package that the Secretary of State described to you in May.

  Chairman: I think we may want to go into some further detail about some of those schemes.


 
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